Bulls Set To Be Tasered Again By Severe Downleg – Clive Maund 09-06-15

Salient to Investors:

In a bear market poised to plunge again. Markets drop twice as fast as they rise because fear is a stronger emotion than greed.

Bearish technicals:

Broken down from the 6-year bearish Rising Wedge pattern.

First bearish moving average cross for 4 years

Volume on the recent plunge was the heaviest for 4 years

Bearish fundamentals:

Global debt saturation and sovereign debt crisis in Europe

Insoluble debt crisis in an aging Japan

Ballooning US deficits

Bursting debt bubble in China

Collapsed commodity markets

Collapsing Emerging Markets

Record margin debt

Huge derivatives pyramid

A world in denial

The Fed wants to raise interest rates to start to reduce its huge balance sheet and head off a collapse of the dollar and Treasury market, but doing so would collapse the stock market and create a depression.

Market will crash whether or not the Fed raises rates in September.

The Fed would sacrifice the stock market in order to save the dollar and bond market – the resulting rate differential would induce fund inflows into the US and create a cushion: and end up supporting the stock market regardless of the state of the economy.

Read the full article at http://www.clivemaund.com/article.php?art_id=3559

Click here to receive free and immediate email alerts of the latest forecasts.